Canary files for Penguin ETF listing with CBOE.

Canary files for Penguin ETF listing with CBOE.

J.P. Morgan Asset Management has made a significant move in the ETF landscape by launching the JPMorgan Active High Yield ETF (JPHY), marking the largest active ETF launch in history. With a $2 billion anchor investment from an institutional client, this ETF is poised to bring substantial liquidity and cost advantages to investors [1].

The JPMorgan Active High Yield ETF (JPHY) will trade on the Cboe BZX Exchange and has an expense ratio of 45 basis points. The fund aims to invest at least 80% of its assets in below-investment-grade debt securities, targeting high current income. It is managed by a seasoned team, including Robert Cook, Thomas Hauser, Jeffrey Lovell, John Lux, and Edward Gibbons, and is benchmarked against the ICE BofA US High Yield Constrained Index [1].

This launch is notable for several reasons. Firstly, it underscores JPM's leadership in the U.S. active fixed income ETF market, with $55 billion in assets under management (AUM) and $10 billion in flows year-to-date in 2025. Secondly, the high-yield bond market is well-suited for active management due to its asymmetrical risk profile, where downside risks often outweigh upside potential. This launch capitalizes on JPM's existing dominance and strategic timing [1].

The 45 basis points expense ratio positions JPHY competitively in the active high-yield space, while also providing substantial fee revenue for JPM. The mandate requiring an 80% allocation to below-investment-grade securities ensures the fund maintains its high-yield focus while allowing flexibility to navigate challenging credit markets [1].

This launch represents a broader shift towards active management in fixed income, where security selection and risk management can add significant value compared to passive index replication. JPM's projection of quadrupling active fixed income ETF assets in five years reflects a calculated market forecast from the category leader signaling transformative growth ahead [1].

References:
[1] https://www.stocktitan.net/news/JPM/j-p-morgan-asset-management-hits-market-with-largest-active-etf-9v8bf40n639q.html